This article is from the Australian Property Journal archive
LEND Lease has sold its interest in the Bluewater shopping centre in the United Kingdom for $A1.221 billion and expects to deliver a 45% uplift in after tax profit for FY14.
Lend Lease sold its interest in Bluewater for £656 million and its management rights and sundry land interests for £40 million to Land Securities Group PLC. The total price of £696 million reflects an initial yield of 4%.
Located in Kent and developed in 1995 on a former derelict chalk quarry, Bluewater opened in 1999 and was anchored by three department stores and over 300 retailing, catering and leisure units, the Centre set the benchmark for quality retailing in the UK.
CEO Steve McCann said Bluewater is an exceptional asset and a tremendous demonstration of Lend Lease’s capabilities as a retail developer and manager.
“The cash proceeds of the sale will initially be used to pay down debt and subsequently support investment in our significant global development pipeline of over $38 billion, including our large urban regeneration projects in London at Elephant & Castle and The International Quarter,” he added.
Lend Lease’s interest in the Bluewater shopping centre is held at inventory value for accounting purposes ($A507 million as at 31 December 2013). After costs, the expected profit is expected to be approximately $A480 million.
McCann also announced that Lend Lease expects net profit after tax for FY14 of $A810 million – $A830 million. Lend Lease remains comfortable with FY15 consensus expectations of $A600 million – $A620 million.
Meanwhile Lend Lease has made a number of adjustments be taken in the FY14 results, and it has decided to restructure and exist these projects.
These adjustments include provisions associated with the proposed divestment of the Crosby apartment portfolio in the UK ($A29 million post tax) and a proposed exit from the PFI Global Renewables Project in Lancashire ($A16 million post tax).
Lend Lease also intends to restructure and potentially exit three communities projects in Australia ($A40 million post tax).
Property Review
